An Easy Way to Make Real-Estate Ownership in NYC Much More Fair
Briefly

An Easy Way to Make Real-Estate Ownership in NYC Much More Fair
"Speaker Adrienne Adams and the City Council have only a few days left to vote on a bill that would finally break down the wall of secrecy that enables New York's co-op boards to discriminate against would-be buyers with impunity. The lawmakers must not skip over a problem that should have been solved decades ago. Intro 407-a would require co-op boards to inform unsuccessful prospective buyers of the reason they've been turned down for an apartment. It would drive a stake through the heart of an ugly part of New York culture that should have died long ago."
"At present, "Co-op boards interview prospective shareholders, and they can reject anyone without justification, whether the reason is weak finances or security concerns or an ugly sport jacket," as New York's Christopher Bonanos put it. That loophole in fair housing laws has fueled decades of celebrity lore about the notable figures, from Madonna and Barbra Streisand to Richard Nixon and Calvin Klein, who were summarily blocked from buying apartments thanks to unseen, unnamed power-tripping board members. (My favorite twist on these tales features the calypso legend Harry Belafonte, who, after being denied an apartment on West End Avenue in the 1950s, purchased the whole 13-story building outright, then converted it into co-ops that he offered to glamorous friends like singer Lena Horne.)"
"Celebrities have the ego, clout, and money to shrug off a rejection and buy elsewhere. But what about the rest of us? Residential communities are not private clubs free to exclude on any basis; they are subject to fair-housing obligations and can be sued for violations like excluding people based on race, religion, nationality, and other protected criteria. But the veil of secrecy makes it nearly impossible to prove discrimination in court. "Secrecy leaves rejected families without information about the reason or reasons for turndown and with limited ability to assess (either by themselves or with the aid of an atto"
Intro 407-a would require co-op boards to inform unsuccessful prospective buyers of the reason for denial. Co-op boards currently interview prospective shareholders and can reject applicants without justification, enabling opaque decisions and potential abuse. Secrecy around rejections fuels anecdotal accounts of celebrities being blocked while leaving ordinary applicants without recourse. Residential cooperatives are subject to fair-housing obligations, but hidden decision-making makes it difficult to prove discrimination in court. Requiring written reasons for denials would increase accountability, help rejected applicants assess legal options, and discourage exclusion based on protected characteristics or arbitrary preferences.
Read at Intelligencer
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